Finance Ministry exempts Government, Embassies, etc. from TCS on cash purchase of goods or services [Read Notification]

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In a recent gazette notification, Ministry of Finance through 21st amendment of Income Tax rules, has exempted Tax Collected at Source (TCS) on cash purchase of goods or services by Government, embassies, Consulates, High Commissions, Legation or Commission and trade representation, of a foreign State and also institutions notified under United Nations (Privileges and Immunities) Act, 1947.

Text of the Amendment as follows;

“Class or classes of buyers to whom provisions of sub-section (1D) of section 206C shall not apply

37CB. (1) The provisions of sub- section (1D) of section 206C in relation to sale of any goods (other than bullion or jewellery) or providing any service shall not apply to the following class or classes of buyers , namely:— (i) Government; (ii) embassies, Consulates, High Commissions, Legation or Commission and trade representation, of a foreign State; (iii) institutions notified under United Nations (Privileges and Immunities) Act, 1947”.

The amendment came into force on 19th August 2016.

Read the full text of the notification below.

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